Government proposes R$ 77 million to Congress to supplement rural insurance
The supplementary credit law bill (PLN 35/2021) that the government sent to the National Congress last Friday provides for an additional BRL 77 million to subsidize the premium of policies in the countryside in 2021. The amount is less than the R$ 376 million that Agriculture wants to fulfill the promise of R$ 1.3 billion for rural insurance subsidies. A government source said that the R$77 million is the result of the first negotiation between the teams of minister Tereza Cristina and minister Paulo Guedes. A new letter was sent to the Economy with a request for more resources. Another member of the Esplanada said that JEO should evaluate the release of another R$ 280 million through the reallocation of internal resources from the Ministry of Agriculture. The BRL 77 million of the PLN, if approved, will help to ‘subsidise the contracting of approximately 19,000 rural insurance policies, benefiting around 14,000 rural producers, protecting BRL 4.8 billion in production and an insured area of 1, 4 million hectares’, says the Executive in the message sent to Congress.
The project was only received today (3/11) due to the extended holiday. In all, the bill provides for R$ 642.1 million to the Ministry of Agriculture, earmarked for various actions. The agricultural defense will receive an additional R$ 58 million for the development of actions that guarantee international trade and the commercialization of agricultural products in the domestic market, in addition to preventing the entry and/or expansion of diseases and pests, such as cocoa moniliasis, in the state of Acre, and African swine fever’, says the government.
They will also have more resources if Congress approves PLN 35, technical assistance and rural extension activities for family farming, land regularization, the Rural Environmental Registry (CAR) and the maintenance of Embrapa’s lines of research. To help with funding, the government indicated the cancellation of R$ 119.7 million of the resources for the economic subsidy for Guarantee and Support of Prices in the Marketing of Agricultural Products, used by the ministry, and another R$ 222.3 million of the contribution to the Crop Guarantee Fund